Official declarations of bankruptcy have and had different meaning and stigma in countries. A decade after the economic upheaval witnessed dramatic changes of scenes surrounding bankruptcy in Korea. The petition of total bankruptcy procedure climbed from 79 in 1996 to 180,055 cases in 2006. All of these turbulent reformation and virtual rebirth of bankruptcy in Korea fall short in one area. These changes do not stir secured creditors’ status in bankruptcy procedures. Compared to U.S., secured creditors in Korea enjoy very strong legal protection even after the debtor’s insolvency realizes. This article will survey the Korea and U.S. law governing secured creditors under bankruptcy procedure and suggests that these relative differences of legal treatment of secured creditors have enormous impacts on the financial transactions beyond bankruptcy itself, specifically consumer and commercial loan practices. (The rest omitted)